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Mohammad Abunayyan: Growing portfolio of energy projects in Uzbekistan reflects visionary reforms of the country`s leadership
-Mr. Abunayyan, first of all, we would like to ask how you, as an authoritative representative of the new energy sector, see the current trends in this industry, and what prospects in this regard can be opened in cooperation with Uzbekistan?
-The energy sector is undergoing a significant transformation driven by the global push towards sustainability and decarbonisation. Key trends include the shift towards renewable and low-carbon energy sources. With the unique and strong bilateral ties between the Saudi and the Uzbek governments, Uzbekistan stands out as one of ACWA Power's fastest-growing portfolios and is our second-largest market after Saudi Arabia.
Uzbekistan is actively developing renewable and low-carbon projects to decarbonise its energy sector, initiated by the reforms of His Excellency President Shavkat Mirziyoyev. The government's clear strategy and supportive reforms for energy transition, including green hydrogen, create a conducive environment for foreign investments.
The supportive investment climate, partnerships with global players, and ongoing modernisation efforts make Uzbekistan an attractive destination for energy investments. The country's commitment to green energy and sustainable development has gained international recognition, positioning it as a leader in the sustainable energy transition.
Our growing portfolio in Uzbekistan reflects these visionary reforms. The collaboration between ACWA Power and Uzbekistan will continue to advance the country's energy transition and achieve its ambitious goals.
In summary, Uzbekistan's progressive reforms and supportive investment climate present significant prospects for cooperation. We look forward to furthering our partnership to support Uzbekistan's journey towards a sustainable and prosperous future.
-Since 2016, our republic has entered a new stage of development, characterised by fundamental reforms in all spheres - from politics and economy to religion. Uzbekistan is changing dynamically and ambitious goals are being set. What can you say about these processes and their results, as a business person who is engaged in a critically important sphere? How do you assess the effectiveness of reforms in Uzbekistan and the investment climate created as a result of their implementation?
-Uzbekistan's ambitious goals have driven significant improvements in the business environment, making it increasingly attractive for foreign investment. The commitment to transparency and inclusivity has fostered a supportive investment climate that encourages innovation and sustainable growth.
The reforms have been particularly impactful in the energy sector. Our growing portfolio in Uzbekistan reflects President Shavkat Mirziyoyev's visionary reforms. The government's clear strategy for energy transition, supported by progressive policies, has enabled the development of renewable and low-carbon projects. These initiatives are crucial for achieving the country’s ambitious decarbonisation goals. The focus on green energy, including green hydrogen, signifies a forward-thinking approach to addressing climate challenges.
The investment climate in Uzbekistan is now notably conducive for foreign direct investment. The government's efforts to establish global partnerships and attract investments have created a thriving ecosystem for sustainable development.
Uzbekistan's potential for growth, rich natural resources, and ambition to drive progress make it an ideal destination for investors. The international recognition of Uzbekistan's energy transition efforts underscores its leadership in this critical area.
In conclusion, the dynamic changes and ambitious goals set by Uzbekistan since 2016 have yielded remarkable results. The effectiveness of the reforms and the supportive investment climate have positioned Uzbekistan as a leader in sustainable development. The ongoing transformation and commitment to sustainability are paving the way for a prosperous future for the Republic.
-Mr. Abunayyan, you are well known in Uzbekistan not only as Chairman of the Board of ACWA Power, the largest investor in our country's economy, primarily in its energy sector, but also as Co-Chairman of the Uzbek-Saudi Business Council. In this context, how do you assess the current state and, mainly, the prospects of trade, economic, and investment co-operation between our countries?
The current state of trade, economic, and investment cooperation between Uzbekistan and Saudi Arabia is exceptionally promising. As Chairman of ACWA Power and Co-Chairman of the Uzbek-Saudi Business Council, I have had the privilege of witnessing the growth and development of our bilateral relations firsthand.
Through its comprehensive reforms, Uzbekistan has made remarkable strides in creating a conducive environment for foreign investments. These reforms have significantly improved the business climate, making Uzbekistan an attractive destination for investors from Saudi Arabia and beyond. Our investments in Uzbekistan, particularly in the energy sector, reflect our strong confidence in the country's economic potential and the visionary leadership of President Shavkat Mirziyoyev.
The Uzbek-Saudi Business Council plays a crucial role in fostering and enhancing the economic ties between our nations. It serves as a platform for dialogue, collaboration, and the exchange of ideas between business leaders and policymakers. This collaboration has led to the successful implementation of several key projects that contribute to Uzbekistan's economic growth and sustainability.
Looking to the future, the prospects for trade, economic, and investment cooperation between Uzbekistan and Saudi Arabia are extremely bright. We are exploring new opportunities in various sectors, including renewable energy, infrastructure, healthcare, and technology. The ambitious goals set by both countries for sustainable development and energy transition align perfectly, providing a solid foundation for long-term partnership and mutual growth.
Uzbekistan's focus on green energy and sustainable development resonates with our own commitment to these goals. The initiatives to develop renewable and low-carbon projects in Uzbekistan are crucial for achieving the Republic’s ambitious energy diversification plans. This progressive approach addresses global climate challenges and creates substantial investment opportunities.
Furthermore, the supportive investment climate and the strategic reforms implemented by the Uzbek government have been instrumental in attracting global players. These efforts have positioned Uzbekistan as a leader in sustainable energy transition, gaining international recognition and opening doors for further collaboration.
The current state of Uzbek-Saudi trade, economic, and investment cooperation is robust and growing. The prospects are even more promising as we continue to build on this strong foundation. The synergy between our countries' visions for sustainable development and economic growth ensures that our partnership will continue flourishing, bringing prosperity and mutual benefits to both nations.
-ACWA Power makes a significant contribution to the development of cooperation between our countries. Does your company plan to continue implementing joint investment projects?
-Absolutely. ACWA Power is deeply committed to continuing and expanding our joint investment projects in Uzbekistan. Our contribution to developing cooperation between our countries has been significant, and we see a bright future ahead.
Our total portfolio in Uzbekistan now comprises 11.6 GW of power, of which 10.1 GW is renewable. This includes Central Asia’s largest wind farm – the Aral Wind IPP – which will have a capacity of 5GW, enough to provide clean power to approximately 4.5 million houses, and the country’s first green hydrogen project with a capacity of 3,000 tonnes per year. The first phase of this groundbreaking project was inaugurated in November 2023. We currently have 20 projects in operation, under construction, or in advanced development in Uzbekistan, with a total investment value of $13.7 billion, making Uzbekistan our largest operation outside Saudi Arabia.
Our investments and ongoing operations in Uzbekistan are structured under 25-year Power Purchase Agreements (PPAs) and the Build-Own-Operate-Transfer (BOOT) model, ensuring our long-term commitment and the sustainability of our regional operations. This approach not only guarantees stable and reliable energy supply but also underscores our dedication to being a strategic partner in Uzbekistan’s development journey.
Uzbekistan is a dynamic and rapidly developing market, and we are proud to be the largest investor in its energy sector. We are enthusiastic about the potential for further growth and innovation, particularly in renewable energy and green hydrogen projects.
ACWA Power is dedicated to maintaining and expanding its investments in Uzbekistan. We look forward to continuing our strong partnership and contributing to the sustainable development of the country's energy sector.
-The direct initiator and driver of reforms in the country is the leadership of Uzbekistan. At the same time, active actions are not limited to internal reforms. Today our republic acts as a participant not indifferent to global issues and problems. Major international initiatives are being put forward, which find the support of the international community and bring concrete results. Please share your assessments of such a proactive domestic and foreign policy of our state.
-Uzbekistan's proactive domestic and foreign policy is highly commendable and demonstrates the country's commitment to comprehensive development and international engagement. Uzbekistan has implemented extensive reforms across various sectors, including the economy, politics, and social infrastructure. These reforms have fostered a more open, inclusive, and dynamic environment for growth and development.
Internally, the reforms have modernised the country, creating a conducive environment for investment, innovation, and sustainable growth. The commitment to transparency, accountability, and inclusivity has significantly improved the business climate, making Uzbekistan an attractive destination for foreign investments.
Externally, Uzbekistan has taken a proactive stance on global issues and actively participates in major international initiatives. This approach underscores the country's role as a responsible and forward-thinking member of the international community. Uzbekistan has positioned itself as a key player in promoting peace, stability, and sustainable development by addressing global challenges and contributing to international dialogues.
The support and recognition that Uzbekistan receives from the international community for its initiatives are a testament to the effectiveness of its foreign policy. These initiatives bring concrete results and enhance Uzbekistan's global standing and influence. For instance, Uzbekistan's efforts in promoting regional cooperation and connectivity have fostered stronger ties with neighbouring countries and beyond, contributing to regional stability and economic integration.
-Uzbekistan's proactive domestic and foreign policy reflects a comprehensive and strategic approach to development and international engagement. The ongoing reforms and international initiatives have not only transformed the country internally but also positioned Uzbekistan as a significant contributor to global efforts to address pressing issues. The results of these initiatives are evident in enhanced economic growth, improved international relations, and the growing recognition of Uzbekistan as a leader in regional and global affairs.
- Looking ahead, what does ACWA Power see as opportunities and challenges for the Uzbek energy sector? How do you see the company evolving and adapting to these changes and what are your long-term goals here?
-Looking ahead, ACWA Power sees significant opportunities in the Uzbek energy sector, particularly in renewable energy. The government has set ambitious targets to increase the share of renewables in the energy mix, and ACWA Power is well-positioned to support Uzbekistan in achieving its goals.
One of the main challenges in deploying renewables is the intermittency of power supply. Rather than look at this as an insurmountable obstacle, we have introduced battery storage solutions (BESS), utilising state-of-the-art technological solutions that were previously unimaginable a decade ago. By integrating BESS into the PV projects, Uzbekistan is set to have some of the region's largest battery energy storage facilities, which will be instrumental in stabilising the grid and advancing renewable energy development in the Republic. We see these challenges as opportunities to bring our expertise and experience in developing and operating large-scale energy projects.
Our intention is to avoid coming into markets to make a quick return on investment. Giving back to the community is important to us, so we have made significant efforts in implementing corporate social responsibility programs in the Republic, which include incorporating 40,000 integrated solar PV panels in remote residential communities, that benefits over 100,000 people in Uzbekistan to power homes and communities and the partnership with Shirin Energy College. This vocational institute is a key centre for training around 350 local talents for a career in the energy and water sectors and we expect to have our first graduates’ batch this summer.
Our long-term goal in Uzbekistan is to be a trusted partner in the country's energy transition, delivering sustainable and affordable power to the people of Uzbekistan. We will continue innovating and exploring new technologies while working closely with local communities and stakeholders to ensure our projects deliver meaningful social and economic benefits.
-We would like to know your opinion about Uzbekistan, where you have visited many times, as a country with a rich cultural and spiritual heritage, and what would you like to say to the Uzbek people?
-Uzbekistan has remarkable beauty, a rich cultural and spiritual heritage, and warm hospitality. Each visit has deepened my admiration for its history, traditions, and the vibrant spirit of its people.
At the last Tashkent International Investment Forum, I was deeply moved by the speech of His Excellency President Shavkat Mirziyoyev. His vision for the new Uzbekistan truly exemplifies transformative leadership. His commitment to Uzbekistan and its people is evident in his focus on what is important and relevant. He emphasises the critical role of investment, but even more significant is his dedication to education, infrastructure, and the quality of life for Uzbek citizens. He is empowering the people and creating future opportunities for them.
This focus makes Uzbekistan so appealing to us as international investors and true partners. We love Uzbekistan because of its exceptional leader, who leads by example. Over the past three years, I have attended many of his speeches and seen that everything he has promised has been implemented. Unlike many leaders who speak but do not act, President Shavkat Mirziyoyev is extraordinary. He delivers on his promises, and we are truly grateful for that.
President Mirziyoyev also believes in Uzbekistan's future and how this partnership extends beyond political relationships to economic ones. Saudi Arabia is now the second-largest investor in Uzbekistan. This vision has become a reality today, with billions invested in the energy sector, including the world's first green data centre. We feel proud and empowered by this vision, love for the Uzbek people, and the ability to turn vision into action.
For the Uzbek people, especially the youth, who make up 60% of the population, Uzbekistan is very fortunate. The President's commitment to the youth, evident in his speeches, reflects his belief in your potential to implement his vision and dreams. Uzbekistan has a bright future and will be a leading example in Central Asia, inspiring others.
We always need leadership and good examples to follow, and Uzbekistan is providing that. I wish you all the best and pray for God's blessings on your continued progress and success.
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